After cheering up markets and analysts alike with its better than expected Q3 results, Infosys is poised to pleasantly surprise its employees too as chief executive officer and managing director S.D. Shibulal said the company plans 6,000-9,000 promotions in the current quarter.
"We did one round of promotions in the middle of the year and the next promotions would be before the end of the current fiscal (year)," Mr Shibulal said.
The announcement coincided with Infosys' third quarter results for the October to December period. The company raised its revenue forecast after posting stronger-than-expected quarterly profit, triggering a 16 percent surge in its shares. Infosys shares are set for their biggest gain in more than a decade.
Many investors had dumped shares in the company after a string of disappointing quarters eroded Infosys' reputation as the sector bellwether, putting pressure on Mr Shibulal to win more deals and make the firm more profitable.
"Q3 is a reflection of the execution of our strategy over the last couple of quarters; it is also a reflection of the hard work of our people," Mr Shibulal said.
Infosys also announced a 3 per cent wage hike for its on-shore employees. India's second largest software services outsourcer was the only tier I software company to defer a wage hike in April, but it gave a 6 per cent wage hike to offshore employees from October 1.
Infosys had also deferred the joining dates for engineers as part of a cost-cutting exercise, but the latest announcements will certainly boost employee morale.
The total employee count at the Bangalore-based company rose to 1,55,629, up 1.2 per cent from 1,53,761 in the September quarter.
Infosys added a total of 8,390 employees, including 891 employees of Lodestone, against 10,420 employees in the second quarter. A total of 6,522 employees left the company against 7,810 in the second quarter.
The utilization rate, a reflection of efficiency, rose to 70.1 per cent (including trainees) against 69.60 per cent in the September quarter.
Mr Shibulal said the company is struggling with low utilization - the lowest in Infosys history - and a pickup in the matrix could lift margins.
"Our utilization is 71 per cent against an optimum level of 78 per cent... if the utilization goes up to 78 per cent, we will easily get somewhere between 3-4 per cent additional margins," he added.